Pakistanis angry over detentions in Times Sq. case Monday, May 24, 2010
ISLAMABAD – Relatives of three men detained by Pakistan for alleged links to the suspect in the attempted Times Square bombing say the men are innocent.
They
AFP - Thursday, August 6TAIPEI (AFP) - - Taiwan's Beijing-friendly government on Wednesday denied boycotting an Australian film festival amid a row over the e
BERLIN (Reuters) - Chancellor Angela Merkel suffered a double blow on Thursday as a senior party ally in east German
Minister seeks closure of anti-Berlusconi websites Wednesday, December 16, 2009
ROME (AFP) - – The Italian government moved Tuesday to close down Internet sites encouraging further violence against Prime Minister Silvio Berlusconi, who
By ELAINE KURTENBACH,AP Business Writer AP - Wednesday, March 18SHANGHAI - Asia's stock market rally seemed to be running out of steam Wednesday, despite an
Edition:
U.S.
Africa
Arabic
Argentina
Brazil
Canada
China
France
Germany
India
Italy
Japan
Latin America
Mexico
Russia
Spain
United Kingdom
Home
Business
Business Home
Economy
Technology
Media
Small Business
Legal
Deals
Earnings
Social Pulse
Business Video
The Freeland File
Markets
Markets Home
U.S. Markets
European Markets
Asian Markets
Global Market Data
Indices
M&A
Stocks
Bonds
Currencies
Commodities
Futures
Funds
peHUB
World
World Home
U.S.
Brazil
China
Euro Zone
Japan
Mexico
Russia
India Insight
World Video
Reuters Investigates
Decoder
Politics
Politics Home
Election 2012
Tales from the Trail
Political Punchlines
Supreme Court
Politics Video
Tech
Technology Home
MediaFile
Science
Tech Video
Tech Tonic
Social Pulse
Opinion
Opinion Home
Chrystia Freeland
John Lloyd
Felix Salmon
Jack Shafer
David Rohde
Bernd Debusmann
Nader Mousavizadeh
Lucy P. Marcus
David Cay Johnston
Bethany McLean
Edward Hadas
Hugo Dixon
Ian Bremmer
Lawrence Summers
Susan Glasser
The Great Debate
Steven Brill
Jack & Suzy Welch
Frederick Kempe
Christopher Papagianis
Breakingviews
Equities
Credit
Private Equity
M&A
Macro & Markets
Politics
Breakingviews Video
Money
Money Home
Tax Break
Lipper Awards 2012
Global Investing
MuniLand
Unstructured Finance
Linda Stern
Mark Miller
John Wasik
James Saft
Analyst Research
Alerts
Watchlist
Portfolio
Stock Screener
Fund Screener
Personal Finance Video
Money Clip
Investing 201
Life
Health
Sports
Arts
Faithworld
Business Traveler
Entertainment
Oddly Enough
Lifestyle Video
Pictures
Pictures Home
Reuters Photographers
Full Focus
Video
Reuters TV
Reuters News
Article
Comments (12)
Counterparties: Today's Best Links
George Soros' dire warning to Europe
European leaders have just 3 months to save the European Union, billionaire investor George Soros writes in an op-ed. Read more at Counterparties
Taleb: Time to start rationing data
Global lending's big contraction
Sign up for the Counterparties email!
Follow Reuters
Facebook
Twitter
RSS
YouTube
Read
Russia turns east to embrace looming China
04 Jun 2012
Top al Qaeda strategist may have been killed in Pakistan
12:55am EDT
What Are 'Bath Salts' And Are They Illegal?
30 May 2012
G7 to hold emergency euro zone talks, Spain top concern
3:37am EDT
All eyes on Wisconsin governor's recall election
1:09am EDT
Discussed
346
NY mayor blasts sugar ban critics: ”That’s a lot of soda”
264
Louisiana’s bold bid to privatize schools
261
Florida to continue voter purge in defiance of warning
Watched
Born in Austria, made in China
Mon, Jun 4 2012
Jubilee concert rocks Buckingham Palace.
Mon, Jun 4 2012
Soros: Germany has three months to save the euro - Rough cuts
Mon, Jun 4 2012
Pictures
Reuters Photojournalism
Our day's top images, in-depth photo essays and offbeat slices of life. See the best of Reuters photography. See more | Photo caption
Hunger in Yemen
More than half the children in Yemen under the age of five are stunted due to hunger and poor nutrition. Slideshow
Plane crash in Nigeria
A passenger jet crashes into in an apartment block. Slideshow
Facebook comments, ads don't sway most users: poll
Tweet
Share this
Email
Print
Related News
Facebook shares plumb new depths, valuation questioned
Tue, May 29 2012
Opera seen a Facebook fit but no "For Sale" sign
Tue, May 29 2012
Shareholders sue Facebook, NYSE comes calling
Thu, May 24 2012
Facebook, banks sued over pre-IPO analyst calls
Wed, May 23 2012
Regulators, investors turn up heat over Facebook IPO
Wed, May 23 2012
Analysis & Opinion
Hoping for a better NYT ombudsman
Why plaintiffs’ lawyers would rather sue Facebook than JPMorgan
Related Topics
Tech »
Media »
Facebook »
In this photo illustration, a Facebook logo on a computer screen is seen through a magnifying glass held by a woman in Bern May 19, 2012. Picture taken May 19, 2012.
Credit: Reuters/Thomas Hodel
By Alexei Oreskovic
SAN FRANCISCO |
Mon Jun 4, 2012 10:18pm EDT
SAN FRANCISCO (Reuters) - Four out of five Facebook Inc users have never bought a product or service as a result of advertising or comments on the social network site, a Reuters/Ipsos poll shows, the latest sign that much more needs to be done to turn its 900 million customer base into advertising dollars.
The online poll also found that 34 percent of Facebook users surveyed were spending less time on the website than six months ago, whereas only 20 percent were spending more.
The findings underscore investors' worries about Facebook's money-making abilities that have pushed the stock down 29 percent since its initial public offering last month, reducing its market value by $30 billion to roughly $74 billion.
About 44 percent of respondents said the market debut, seen by investors as troubled, has made them less favorable toward Facebook, according to the survey. In the May 31-June 4 poll of 1,032 Americans, 21 percent said they had no Facebook account.
Facebook's 900 million users make it among the most popular online destinations, challenging entrenched Internet players such as Google Inc and Yahoo Inc. Not everyone is convinced the company has figured out how to translate that popularity into a business that can justify its lofty valuation.
Shares of Facebook closed Monday's regular trading session down 3 percent at $26.90.
While the survey did not ask how other forms of advertising affected purchasing behavior, a February study by research firm eMarketer suggested Facebook fared worse than email or direct-mail marketing in terms of influencing consumers' decisions.
"It shows that Facebook has work to do in terms of making its advertising more effective and more relevant to people," eMarketer analyst Debra Williamson said.
Those concerns were exacerbated last month when General Motors Co, the third largest advertiser in the United States, said it would stop paid advertising on Facebook.
Facebook declined to comment in detail on the survey, but referred to case studies of companies such as Nutella, which found that a 15 percent increase in sales was attributable to Facebook, and restaurant chain Applebee's, whose Facebook ads delivered a threefold return on investment.
Measuring the effectiveness of advertising can be tricky, particularly for brand marketing in which the goal is to influence future purchases rather than generate immediate sales.
The success of an ad campaign must be considered in relation to the product, said Steve Hasker, president of Global Media Products and Advertiser Solutions at Nielsen.
"If you are advertising Porsche motor cars and you can get 20 percent of people to make a purchase that's an astonishingly high conversion rate," said Hasker.
"If you are selling instant noodles, maybe it's not," he
WANING ENGAGEMENT
About two out of five people polled by Reuters and Ipsos Public Affairs said they used Facebook every day. Nearly half of the Facebook users polled spent about the same amount of time on the social network as six months ago.
Keeping users coming back is crucial for all social media services, said Gartner analyst Ray Valdes.
"Facebook continuously has the challenge of Facebook fatigue, of the novelty factor wearing off, and therefore they have to introduce new kinds of interaction," said Valdes, citing new features such as the "Timeline" interface and the planned $1 billion acquisition of mobile photo-sharing app Instagram.
The survey provides a look at the trends considered vital to Facebook's future at a time when the company has faced a harsh reception on Wall Street.
Facebook's $16 billion IPO, one the world's largest, made the U.S. company founded by Mark Zuckerberg the first to debut on markets with a capitalization of more than $100 billion.
Its coming out-party, which culminated years of breakneck growth for the social and business phenomenon, was marred by trading glitches on the Nasdaq exchange. A decision to call some financial analysts ahead of the IPO and caution them about weakness in its business during the second quarter has triggered several lawsuits against Facebook and its underwriters.
Forty-six percent of survey respondents said the Facebook IPO had made them less favorable towards investing in the stock market in general.
While Facebook generated $3.7 billion in revenue last year, mostly from ads on its website, sales growth is slowing.
Consumers' increasing use of smartphones to access Facebook has been a drag on the company's revenue. It offers only limited advertising on the mobile version of its site and analysts say the company has yet to figure out the ideal way to make money from mobile users.
Facebook competes for online ads with Google, the world's No. 1 web search engine, which generated roughly $38 billion in revenue last year. Google's search ads, which appear alongside the company's search results, are considered among the most effective means of marketing.
Facebook is still perfecting the effectiveness of its ads, said Gartner's Valdes. But he said he was surprised that the comments posted on the website from Facebook users' friends were also only responsible for 20 percent of users making a purchase.
"Comments and recommendations from friends on Facebook do carry a lot of weight, so I'm surprised by the number," he said.
The most frequent Facebook users are aged 18 to 34, according to the survey, with 60 percent of that group being daily users. Among people aged 55 years and above, 29 percent said they were daily users.
Of the 34 percent spending less time on the social network, their chief reason was that the site was "boring," "not relevant" or "not useful". Privacy concerns ranked third.
The survey has a "credibility interval" of plus or minus 3.5 percentage points.
(Additional reporting by Gerry Shih; Editing by Edwin Chan and Paul Tait)
Tech
Media
Facebook
Related Quotes and News
Company
Price
Related News
Tweet this
Link this
Share this
Digg this
Email
Reprints
We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/
Comments (12)
LordCavendish wrote:
Edition:
U.S.
Africa
Arabic
Argentina
Brazil
Canada
China
France
Germany
India
Italy
Japan
Latin America
Mexico
Russia
Spain
United Kingdom
Back to top
Reuters.com
Business
Markets
World
Politics
Technology
Opinion
Money
Pictures
Videos
Site Index
Legal
Bankruptcy Law
California Legal
New York Legal
Securities Law
Support & Contact
Support
Corrections
Connect with Reuters
Twitter
Facebook
LinkedIn
RSS
Podcast
Newsletters
Mobile
About
Privacy Policy
Terms of Use
AdChoices
Copyright
Our Flagship financial information platform incorporating Reuters Insider
An ultra-low latency infrastructure for electronic trading and data distribution
A connected approach to governance, risk and compliance
Our next generation legal research platform
Our global tax workstation
Thomsonreuters.com
About Thomson Reuters
Investor Relations
Careers
Contact Us
Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests.
NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.